United Carton Industries (UCCI), a leading packaging company in Saudi Arabia, announced a strategic move to strengthen its financial position, signing an agreement to renew Sharia-compliant banking facilities with the National Bank of Saudi Arabia, the largest bank in the Kingdom, with a total value of SAR 195 million.
According to the official statement published by the company on the Saudi Stock Exchange (Tadawul), this agreement represents a continuation of the strong financing relationship between the two parties. The renewed financing term extends until July 31, 2026, providing the company with financial flexibility and stability in the medium term. To secure this facility, United Carton Industries issued a promissory note for the full value of the financing in favor of the National Commercial Bank (NCB), a standard procedure in such agreements to guarantee the rights of all parties.
General context and importance of the sector
This move comes at a time when the Kingdom’s manufacturing sector is experiencing significant growth, driven by the goals of Saudi Vision 2030, which aims to diversify the economic base and increase the contribution of the non-oil sector to GDP. The packaging industry, in which UCSC operates, plays a pivotal role as a supporting sector for many other vital industries, such as food and beverages, pharmaceuticals, e-commerce, and fast-moving consumer goods. Securing the necessary financing reflects the continuity and strength of local supply chains.
Expected impact and funding objectives
The financing is primarily intended to support the company's working capital requirements. This includes facilitating daily operations, issuing the necessary letters of credit for importing raw materials, and covering incoming collection documents. Sufficient cash flow enables the company to respond quickly to increasing market demands, improve its inventory management capabilities, and efficiently meet its obligations to suppliers and customers. Domestically, this financing enhances the company's competitiveness and expansion potential, which can contribute to job creation and support local content. Regionally, the stability of a company the size of UCSC reinforces the Kingdom's position as a leading industrial and logistics hub in the region.
The renewal of these credit facilities not only reflects the great confidence that the National Bank of Saudi Arabia has in the financial solvency and operating model of the United Carton Industries Company, but also confirms the vital role that the Saudi banking sector plays in enabling national companies and driving sustainable economic growth within the framework of the Kingdom’s ambitious vision.
